Renewing your mortgage in 2026? Read this before you sign anything

If your mortgage renews this year, there's a decent chance you signed your current term back when rates were near historic lows. Lots of Canadians did, and many of them are now opening renewal letters that look very different from the mortgage they've been living with.

Take a breath. A renewal is not something that happens to you. It's a decision you get to make, and made well, it can leave you better off than you were. Here's how to approach it.

First, know what the letter actually is

Your lender's renewal letter is an offer, not a bill. It's also, quite often, not their best offer. Lenders count on the convenience factor, because signing and sending it back takes two minutes. But you're under no obligation to accept it, and at renewal you can change your rate, your term, your payment schedule, and even your lender without the penalty that breaking a mortgage mid term would cost.

Second, start earlier than feels necessary

Four to six months before your renewal date is the sweet spot. That's when lenders will hold a rate for you, which gives you a free insurance policy: if rates rise before your renewal, you keep the held rate, and if they fall, you take the lower one. Starting early costs nothing and waiting costs options.

Third, look at the whole picture, not just the rate

The rate gets the headlines, but your renewal is the natural moment to ask bigger questions. Should you shorten your amortization now that your income has grown? Stretch your payments to free up monthly cash? Roll some higher interest debt into the mortgage? Set up prepayment room for the inheritance or bonus you see coming? These choices can matter more over a term than a small rate difference.

What about where rates are now?

At the time of writing, the Bank of Canada has held its policy rate steady at 2.25% through the spring of 2026, a long way down from the peak years. Where rates go next is anyone's honest guess, which is exactly why a rate hold and a real comparison beat crossing your fingers.

What I do for renewals

Send me your renewal letter, or just your renewal date. I'll compare your lender's offer against what more than 50 other lenders would give you, and I'll tell you plainly which is better. Sometimes the honest answer is that your current lender wins, and you'll hear that from me too. One of my favourite client reviews came from a man I told to stay exactly where he was.

Renewal on the horizon? Let's look at it together. Call 250 328 4245 or send me a note, and bring the letter if you have it.